Question 1

The automatic identification of material is part of/facilitated by:

Accepted Answer

A)  holding costs
B)  RFID
C)  working capital reduction
D)  net present value calculations
E)  vendor analysisF) A) and D)
G) A) and E)

Question 2

RFID eliminates the need for counting and bar-code scanning.

Accepted Answer

A) True 
 B)False  True

Question 3

E-commerce involves business-to-business (B2B) interaction only.

Accepted Answer

A) True 
 B)False

Question 4

Bullwhip effect refers to a phenomenon that demand variations that exist at the customer end of the supply chain are magnified as orders are generated back through the supply chain.

Accepted Answer

A) True 
 B)False  True

Question 5

The two types of decisions that are relevant to supply chain management are:

Accepted Answer

A)  Short, long term
B)  Domestic, international
C)  Location, layout
D)  In-source, out-source
E)  Tactical, operationalF) A) and E)
G) B) and C)

Question 6

A given inventory item has a per-year holding cost of $500.One method of shipping this item is three days faster than the other, but it is $2.50 more per unit.Using the slower method would be __________ more expensive overall than using the faster method.

Accepted Answer

A)  $1.08
B)  $1.16
C)  $2.37
D)  $2.73
E)  $1.61F) B) and E)
G) A) and E)

Question 7

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

Accepted Answer

A) True 
 B)False

Question 8

A factor that makes it desirable for business organizations to actively manage their supply chains is:

Accepted Answer

A)  more potential vendors
B)  increasing globalization
C)  downsizing
D)  the internet
E)  RFID'sF) B) and E)
G) A) and B)

Question 9

Scheduling and maintaining equipment are operational decisions.

Accepted Answer

A) True 
 B)False

Question 10

Last quarter, a retailer sold 8,000 t-shirts, 7,000 of which were sold directly from on-hand inventory.This retailer's ________ was 88%.

Accepted Answer

A)  fill rate
B)  inventory yield
C)  profit margin
D)  inventory turnover
E)  none of the aboveF) A) and E)
G) B) and C)

Question 11

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

Accepted Answer

A) True 
 B)False

Question 12

The design of the supply chain and establishing partnerships with vendors and distributors are examples of operating issues in a supply chain.

Accepted Answer

A) True 
 B)False

Question 13

The importance of purchasing is the cost of goods purchased, the quality of goods and services, and the timing of deliveries of goods or services.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would not usually be a main factor in selecting a vendor?

Accepted Answer

A)  location
B)  price
C)  quality
D)  inventory turnover
E)  vendor servicesF) B) and E)
G) B) and D)

Question 15

Real time information about product movement on store shelves could benefit from the use of:

Accepted Answer

A)  batch processing
B)  economic order quantities
C)  statistical process control
D)  radio frequency identification tags
E)  infrared remote scannersF) A) and D)
G) B) and D)

Question 16

Most people working for a business organization are somehow involved with the supply chain of that business.

Accepted Answer

A) True 
 B)False  True

Question 17

Which of the following is not a performance driver?

Accepted Answer

A)  Quality
B)  Cost
C)  Stability
D)  Velocity
E)  FlexibilityF) C) and E)
G) None of the above

Question 18

Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.

Accepted Answer

A) True 
 B)False

Question 19

Outsourcing logistics gives a company less flexibility because it forces them to focus more on core businesses.

Accepted Answer

A) True 
 B)False

Question 20

Decentralized purchasing can usually offer quicker response than centralized purchasing.

Accepted Answer

A) True 
 B)False

Exam 15: Supply Chain Management

The automatic identification of material is part of/facilitated by:

Correct AnswerverifiedShow Answer

RFID eliminates the need for counting and bar-code scanning.

Correct AnswerverifiedTrue

E-commerce involves business-to-business (B2B) interaction only.

Correct AnswerverifiedShow Answer

Bullwhip effect refers to a phenomenon that demand variations that exist at the customer end of the supply chain are magnified as orders are generated back through the supply chain.

Correct AnswerverifiedTrue

The two types of decisions that are relevant to supply chain management are:

Correct AnswerverifiedShow Answer

A given inventory item has a per-year holding cost of $500.One method of shipping this item is three days faster than the other, but it is $2.50 more per unit.Using the slower method would be __________ more expensive overall than using the faster method.

Correct AnswerverifiedShow Answer

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

Correct AnswerverifiedShow Answer

A factor that makes it desirable for business organizations to actively manage their supply chains is:

Correct AnswerverifiedShow Answer

Scheduling and maintaining equipment are operational decisions.

Correct AnswerverifiedShow Answer

Last quarter, a retailer sold 8,000 t-shirts, 7,000 of which were sold directly from on-hand inventory.This retailer's ________ was 88%.

Correct AnswerverifiedShow Answer

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

Correct AnswerverifiedShow Answer

The design of the supply chain and establishing partnerships with vendors and distributors are examples of operating issues in a supply chain.

Correct AnswerverifiedShow Answer

The importance of purchasing is the cost of goods purchased, the quality of goods and services, and the timing of deliveries of goods or services.

Correct AnswerverifiedShow Answer

Which of the following would not usually be a main factor in selecting a vendor?

Correct AnswerverifiedShow Answer

Real time information about product movement on store shelves could benefit from the use of:

Correct AnswerverifiedShow Answer

Most people working for a business organization are somehow involved with the supply chain of that business.

Correct AnswerverifiedTrue

Which of the following is not a performance driver?

Correct AnswerverifiedShow Answer

Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.

Correct AnswerverifiedShow Answer

Outsourcing logistics gives a company less flexibility because it forces them to focus more on core businesses.

Correct AnswerverifiedShow Answer

Decentralized purchasing can usually offer quicker response than centralized purchasing.

Correct AnswerverifiedShow Answer

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